It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)

Sunday, May 29, 2016

THE TRANS PACIFIC PARTNERSHIP AND THE WINNER IS: VIETNAM

The U.S. International Trade Commission said the Trans-Pacific Partnership would increase economic growth and create jobsExports would increase, but imports would increase more, the report said.Critics worry it would cost jobs by exposing American workers to low-wage competition from countries such as Vietnam. They also say it would allow multinational corporations to challenge local laws by saying they violate the trade deal.

As part of his legacy tour President Obama visited Vietnam, and allowed them the right to buy weapons from their old foe the USA to help keep at bay an even older foe; China. Obama calls this his Asia Pivot.

Its ironic that those who call themselves fiscal conservatives, denounce governments for picking winners and losers, and then cheer on these trade deals that do just that.

For Obama and Vietnam his visit was a win for the TPP which both countries agree is vital. And in Vietnam's case this is vitally true, more so than for any other pacific nation even Japan.

For all the controversy raised by the secrecy and wheeling and dealing behind the scenes diplomatically with no one admitting anything, that went into the creation of the TPP in the end it is just another agribusiness trade deal, with add ons, or as the Americans call them; earmarks.

It is a trade agreement that also allows Vietnam to become the newest of the developing countries in the pacific region to create a modern Fordist economy based on outsourced manufacturing, aka sweatshops.

Unlike Cambodia which is picking up the apparel business that Bangladesh is losing as it faces increased calls for government regulation, health and safety regs, workers rights, unionizaiton, Vietnam aspires to also produce car parts, steel, etc.

This is where the TPP would allow Vietnam to benefit from off shoring by Japan where Toyota, Mitsubishi, Honda, etc. could produce car parts, as could Korea with Hyundai, Kia, etc.

The seal of joint approval came this week when for the first time a sitting US President visited Vietnam, and with he brought that valuable weapons agreement.

Vietnam is one of the contestants with China over sovereignty in the resource rich South China Sea, around VN deep sea oil beds exist that are in contestation. Japan, the Phillipines, Malaysia all are fellow contestants for the sovereignty and resources of the South China Sea against China's claims of ownership.

For Vietnam the TPP is even bigger than the South China Sea resources, because it will remove tarriffs and open markets in North America to their sea food and agricultural products, to Japan and Korea as outsourcing for car manufacturing, and a new trading partner with Australia and New Zealand.

No other country gains as much from the TPP as Vietnam, and small as it is, it believes that it can be a competitor to China's regional hegemony by also producing car parts for them as well. For Vietnam its a win win situation.

For the other eleven members of the TPP the only real advantage to the agreement is that of dropping tariffs on agricultural goods.

For Multinational corporations its another step in the development of a global corporate free trade policy to their liking.